Bank deposits increase to over Rs35tr in September

October 28, 2025 (MLN): The total deposits held by scheduled banks increased by 2.2% MoM to Rs35.21 trillion by the end of September 2025, up from Rs34.46tr in August, according to the latest data released by the State Bank of Pakistan (SBP).

On a yearly basis, deposits recorded a strong 12.3% increase, compared to Rs31.34tr  held in September 2024.

Total advances posted a 2.0% MoM rise, reaching Rs13.46tr  compared to Rs13.19tr  a month earlier. On a yearly comparison, advances grew by 9.4%, up from Rs12.31 trillion in the same month last year.

However, the growth in deposits outpaced advances, leading to a mild decline in the Advances-to-Deposits Ratio (ADR) to 38.2%, down 6 basis points (bps) month-on-month and 104 bps year-on-year.

The moderation in ADR reflects persistently weak private sector credit demand amid subdued economic activity, coupled with higher government borrowing to finance the budget deficit.

Total investments of scheduled banks declined by 1.3% MoM to Rs35.82tr, compared to the previous month. However, on a yearly basis, investments recorded a strong 16.7% increase.

Consequently, the Investment-to-Deposit Ratio (IDR) dropped 362 bps MoM to 101.7%, though it remained 377 bps higher YoY, underscoring banks’ continued preference for government securities over private sector lending.

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